The Wall Street Journal has reported this weekend that Cantor Fitzgerald LP’s sports betting subsidiary CG Technology has agreed to pay $22.5 million to the US government in forfeiture of the firm’s connection with illegal gambling and money laundering activities.
Cantor governance has pushed for a non-prosecution agreement with the US Government, with CG Technology admitting responsibility of aiding and abetting illegal gambling and money laundering services from the period of 2009-2013.
The US Department of Justice has run several probes against CG Technology (formerly known as Cantor Gaming), in relation to its sports wagering services in the state of Nevada (2009-2013).
The DOJ probes have centred around CG Technology failing to report suspicious gambling activity and money laundering practices within its Nevada sports betting properties.
Investigations had found that CG properties had become havens for ‘messenger bets’, where an agent would place a wager for an ‘out of state’ third party. The practice is deemed illegal by Nevada state gambling laws.
Reports claim that due to CG’s lax monitoring of sports wagers taken in its Nevada properties, criminal syndicates had been able to run betting services elsewhere laundering money through CG premises.
To date, Cantor governance has paid circa $5 million to US regulators relating to its failed CG Technology provisions.
This July CG Technology was further rocked by the Nevada Gaming Control Board (NGCB) which found the operator of knowingly running a malfunctioning betting system which had duped its parlay customers.
The embarrassing NGCB investigation had forced Cantor governance to sack CG Technology Chief Executive Lee M Amaitis as well as paying a $1.5 million fine.
